Which of the Following Board Characteristics Are Likely to Reduce

question 4

Multiple Choice

Which of the following board characteristics are likely to reduce earnings management?

• A)The existence of an audit committee.
• B)A mix of monitoring and expertise skills.
• C)More independent directors.
• D)All of the above.

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Definitions:

Defense Mechanism

Psychological strategies unconsciously employed to protect oneself from anxiety or to cope with reality.

Rationalization

The cognitive process of making an excuse or creating a plausible explanation for behaviors, decisions, or feelings.

Smoking Cessation

The process of discontinuing tobacco smoking, which can significantly reduce the risks of developing smoking-related diseases.

Post-traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.